On November 28, Caixin reported (Editor Zhao Hao) that local time on Wednesday, November 27, Elon Musk replied to other posts on social media X, stating, "Abolish the CFPB (Consumer Financial Protection Bureau), there are too many such redundant regulatory agencies."

Earlier this month, US President-elect Trump announced the establishment of the 'Government Efficiency Department' (DOGE), to be jointly led by Musk and American entrepreneur Ramaswamy, responsible for cutting government spending and streamlining bureaucratic institutions.

Last week, Musk and Ramaswamy released a 'reform agenda,' proposing to cut multiple unreasonable regulations of the federal government, and starting a large-scale layoff plan. Musk has stated that there are approximately 428 federal agencies, and he plans to reduce these agencies to 99.

The Consumer Financial Protection Bureau, which Musk targeted this time, is an independent institution under the Fed, established by the Obama administration to address financial sector abuses following the 2008 financial crisis, responsible for supervising financial institutions with assets of over 10 billion USD.

After the financial crisis, Harvard Law Professor and top bankruptcy law expert Elizabeth Warren proposed to Obama the creation of a Consumer Financial Protection Bureau, which was then established under the authorization of the Dodd-Frank Act.

It is understood that CFPB's jurisdiction includes banks, credit unions, securities companies, and many other financial institutions, allowing the dispatch of so-called 'financial police' personnel to financial institutions for permanent auditing and internal operational supervision, and interview senior company executives.

Warren believes that taxpayers should be protected more, predatory lending practices should be curbed, and major financial institutions should bear more responsibility, while enhancing the US government's regulatory role. When the CFPB officially started operations in 2011, Warren, who was supposed to lead the department, had to resign due to strong opposition from the Republicans.

In the following year, Warren successfully elected as a senator from Massachusetts and has been re-elected ever since. In this year's election, she secured a third senatorial term of six years with nearly 60% of the vote. It is worth noting that Warren and Musk have clashed multiple times, with battles spanning from social media to the court.

Media analysis points out that Musk's claim to 'want to abolish CFPB' may not be just a personal grudge, as the institution has always been a thorn in the side of Republicans and pro-business groups in the United States. Republicans believe that any regulatory actions are more harmful than beneficial, as they would impede lending and shrink credit consumption.

In 2017, Trump signed an executive order requiring the Treasury Department to conduct a review of regulatory laws, including the Dodd-Frank Act, the Consumer Financial Protection Bureau (CFPB) could be retained, but the power of its director should be weakened.

After Biden took office, the CFPB became active again. In response, the long-standing conservative think tank, the 'Traditional Foundation,' developed the '2025 Plan' for Trump, which calls for the abolition of the CFPB, labeling it as 'highly politicized, destructive, and completely irresponsible.'

The '2025 Plan' demands that the functions of the CFPB be transferred back to banking regulatory agencies and the Federal Trade Commission (FTC), aligning with Musk's view that 'there are too many such redundant regulatory agencies.'

Editor/Lambor